Liability in case of transfer of establishment.
93A. Where an employer, in relation to a factory or establishment transfers that factory or establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the factory or establishment is so transferred shall jointly and severally be liable to pay the amount due in respect of any contribution or any other amount payable under this Act in respect of the periods up to the date of such transfer:
PROVIDED that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.
COMMENTS
Section 93A using the expression "employer" requires an interpretation in reference with the definition of the "principal employer" as laid down under s. 2(17) of the Act. And the term "employer" under s. 93A of the Act indicates towards the owner of the factory.-- Vemly Hotels v. Kuldeep Singh 1987 (59) FLR 182. |